Xp Health – Validation Institute Podcast Ep 20

XP Health, with the help of the Validation Institute, has proven its exceptional value in the vision care market. Their certification process verified the remarkable cost savings and efficiency of their eyewear solutions. This collaboration underscores their commitment to transparency and trust in healthcare benefits.

Key Takeaways from XP Health’s Innovative Approach

1. Substantial Cost Reductions: XP Health significantly lowers out-of-pocket costs for eyewear, making vision care more accessible. Their approach saves members up to three times compared to traditional methods.
2. High Customer Satisfaction: With a positive Net Promoter Score (NPS) far surpassing traditional vision plans, XP Health demonstrates superior customer satisfaction. This metric reflects their successful member-centric strategy.
3. Increased Utilization: XP Health reports a 459% increase in utilization rates, proving their health services are not only affordable but also widely utilized. This high usage underscores the effectiveness of their service model.
4. Innovative Technology: By integrating cutting-edge technology for online prescriptions and virtual visual acuity tests, XP Health modernizes and streamlines the process of obtaining eyewear. Their digital solutions enhance convenience and accessibility for all users.

Introduction to XP Health

Validation Institute:

“Hello everyone. I would like to introduce you to Antonio Moriz, CEO and founder of XP Health. Hi Antonio, it’s nice to see you again.”

Antonio Moriz, CEO of XP Health:

“Hey, thanks for the invitation.

A Conversation on Vision Care Innovation

Validation Institute:

It’s good to have you here. So before we begin, I recall this meeting a few years ago when XP Health was in its early stages. Your vision for a hassle-free, affordable, turnKey vision care organization was truly remarkable. Witnessing its impressive growth has been amazing. So Antonio, I was hoping you would start by elaborating on what sets XP Health apart from other vision plans.”

Antonio Moriz, CEO of XP Health:

“Great, thanks for the question. We’re basically 10 times better than other Vision plans, and that’s a big reason why we decided to do this certification process with the Validation Institute because honestly, it always felt too good to be true to our prospects, our clients. So we decided to certify some of the claims.

Right, so why we are 10 times better starting with the fact that our members they pay three times less out of pocket costs on eyewear.

So that’s something that we certify. We have 69% lower claims costs for eyewear, and the out-of-pocket cost is three times lower.

The second reason we are 10 times better is our competition, traditional vision insurance plans they have a negative NPS usually minus eight, and then we have a really high positive NPS, like over 65.

So mathematically you could say we’re infinitely better right, but at least we know we’re substantially better from a member experience to the MPS is tracking and just the third thing is our utilization is much much higher for a number of reasons that I can explore but that’s another claim that we certified with you guys, we had 459% higher utilization in this case study that we certified with the Validation Institute so that that’s why like we’re 10 times better I would say.”

Discussing Cost Reduction and Accessibility

Validation Institute:

“That that’s all great stuff, and the way you started that with, it sounded too good to be true, usually we tell people you may want to check it out if it sounds that way, but in your case, you’ve proved those numbers out. And I want to ask you how does XP Health reduce the cost so significantly for employees?”

Antonio Moriz, CEO of XP Health:

“Yes, so that’s one of the major questions that we always get. Basically, we are assertive; we are simplifying the supply chain around eyewear.

There’s really abusive markups in the optical industry if you think about a pair of Ray-Bans, Tom Fords, or Gucci glasses.

If you looked at markups, they are typically over a thousand percent, so if you were able to buy from the factory the frames and the lenses, you would be paying, you know, fifteen dollars with the best lenses, doctor-recommended coatings, everything that you can get.

But then they are many times retailing for 400, 600, or many times above a thousand dollars, right? And the cost is really much lower, so what we did with vertical integration of the supply chain, and we have a payer-provider model that is integrated more like Kaiser Permanente for the optical industry, if you will.

But then we share back the savings with our members; that’s a big difference. While someone like Luzartka, for example, they are vertically integrated; they own LensCrafters and Ray-Ban, and like iMed, but then they basically kept the profit at every step of the way, and we just wanted to create a model that really benefits the members in the first place, so we are member-centric instead of being retail-centric. That’s a big difference, right?”

Enhancing Eye Care with Technology

“And so when I’m shopping for you know eyeglasses or contacts whatever how do exams work with XP Health?”

Antonio Moriz, CEO of XP Health:

“So we have a network of 99,000 provider combinations meaning you have access to like Walmart, Target, LensCrafters, Private Practice optometrists and this is all across all 50 states in the US really high penetration even in more remote areas as well.

So you can go anywhere in person to get a comprehensive eye exam and also we have a technology that allows you to renew your prescription for glasses or contacts online.

So basically, you do have a virtual visual acuity test, think like the DMV test. We send that information to our remote optometrist who then signs off your new prescription. So, we have both the in-person but also the online aspect for terms of care for our members.”